Bitcoin
Cryptocurrency Market Defies Tech Stocks’ Plunge as Bitcoin Surges Above $66,000 Amid Trump Rumors
Bitcoin and the cryptocurrency market in general are recovering despite the bearish trend in equity markets, especially in technology stocks, pointing to a break in correlation between the two.
The flagship cryptocurrency has surged more than 4% in the past few hours, reaching $66,377 at press time, based on data from CryptoSlate.
Meanwhile, other major tokens like Ethereum It is Solana are up 2.24% and 7.8% respectively — with ETH trading at $3,482 and SOL at $170 at press time.
Technological correlation
The cryptocurrency market saw a significant surge as trading in New York began, rising to new monthly highs despite most stocks falling at the same time. This is a notable break in the correlation between crypto and tech stocks, specifically, which have mostly moved in tandem since roughly 2020.
Correlation has often been linked to growing adoption among institutional investors, who view Bitcoin and other cryptocurrencies through a similar lens as tech stocks, leading to synchronized trading patterns.
Studies have shown varying degrees of correlation between Bitcoin and technology stocks. For example, during certain periods, the correlation coefficient between Bitcoin and the NASDAQ-100 index (which is heavy on technology) has increased, indicating a stronger relationship.
Despite the growing correlation, there are still periods when Bitcoin and tech stocks diverge due to unique events that affect the cryptocurrency market, such as regulatory news or significant developments in blockchain technology.
Market uptrend
Bitcoin’s latest rally is fueled by several factors, the most prominent of which are rumors that former President Donald Trump may plan to announce intentions to make BTC a strategic reserve asset to the USA.
Trump has completely shifted to a pro-crypto stance in recent weeks as the issue has become increasingly important among many voters. He has won widespread support among technology and cryptocurrency industry leaders who believe their policies will be more favorable for both sectors.
Strong support from a presidential candidate currently favored to win has given Bitcoin a fresh boost after it fell to a multi-month low amid recent selloffs in Germany.
Meanwhile, Solana has been outperforming most of the top 10 tokens as the meme frenzy continues to grip the community despite a significant slowdown compared to earlier in the year. The latest rally in SOL has also led to a notable increase in most of the top memecoins.
SOL’s momentum is primarily driven by increased adoption and the expectation that it will be the next token to receive the ETF treatment. Several companies have already filed applications for a Solana spot ETF.
Bitcoin Market Data
At the time of printing, 20:23 UTC on July 19, 2024, Bitcoin is ranked #1 in market capitalization and the price is up to 5.5% in the last 24 hours. Bitcoin has a market cap of 1.32 trillion dollars with a 24-hour trading volume of $34.24 billion. Learn more about Bitcoin ›
Cryptocurrency Market Summary
At press time, 20:23 UTC on July 19, 2024, the total cryptocurrency market is valued at US$2.44 trillion with a 24-hour volume of US$ 78.74 billion. Bitcoin dominance is currently at 54.28%. Learn more about the cryptocurrency market ›